Checkout
Start free trial
Take Naologic for a spin today, no credit card needed and no obligations.
Start free trial
Question

Replenishment - What is replenishment cost?

Answer

Basically, it's the amount it takes to keep one dollar's worth of merchandise in your warehouse for a whole year. To get your "best buy" replenishment quantity, among other inventory analysis and planning formulae, you employ the carrying cost. One such method is the economic order quantity formula.